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Ernst & Young recently released a report, the world’s 30 largest steel companies total debt reached a record $ 150 billion, which further suggests that only with more thorough reorganization of the industry, government support for the industry, it may be effective.

Ernst & Young said in a report, the iron and steel enterprises to seize market share and massive debt, especially in China’s steel industry to increase production capacity of approximately one billion tons since 2000, so that global excess production capacity reached 700 million tons. China’s total iron and steel industry debt is estimated at $ 500 billion, compared to the world’s 30 largest steel debt business is much smaller. “Many steel companies in trouble, and some teetering on the brink of bankruptcy,” Ernst & Young said, “only if the steel industry has a viable business model, the Government’s efforts in order to work.”

ThyssenKrupp is the world’s 16th largest steel company, has announced the sale of real estate, and started talks with Tata Steel merger. As of the end of June this year, ThyssenKrupp leverage ratio of 175%, 124% over the same period last year; the debt was 4.77 billion euros, a year earlier to 4.39 billion euros. The company plans to the end of September this year, will leverage ratio fell below 150%.

The largest global steel companies Arcelor Mittal company offering financing of $ 3 billion to resolve its debt problems. ArcelorMittal also in April this year to sell $ 1 billion worth of auto parts manufacturers in Spain Gestamp Company (Gestamp) shares. At the end of the first half of this year, ArcelorMittal net debt of $ 12.7 billion, but the company forecast 2016 cash flow will be positive. (World Metal Bulletin)

From the current perspective, short-term steel market is rising or without power, down-free atmosphere of the cycle, the overall market or adjust the main shock, the range of USD 6-12 / ton. Analysis, on the one hand very price will feed manufacturers strong at weaker steel market two days before the premise, manufacturers and steel billet manufacturers almost did not fall, manufacturers very price will demonstrate, the cost of supporting the market. On the other hand the terminal needs follow-up is limited, some businesses believe that the current price is a little high, there are some short-term market correction is expected, so for more than the current market mostly watching, getting goods enthusiasm is not strong, steel prices suppressed. Also nearby futures market has entered an adjustment phase, fall and rise are looking for direction. Thus, short-term market or in long and short game, finishing a narrow range market based. As finishing time, under the premise of no major adjustments futures, temporarily to see a week or so.

For long-term market, still pull up trend. First, the ongoing environmental audits, according to market sources present, Jiangsu, Henan, basic quick review has been completed, there is a trend towards the transfer of Shandong. The second half of the face 70% of the elimination of backward production capacity mission, the larger market pressures, is expected to post non-compliance so that enterprises have ceased production, limited production, such as multiple means to union, is expected to reduce the supply of market speculation factors, the market form a good support. Second, after the experience of the pre-flood, post-disaster reconstruction will be launched, will be ordered driving steel demand, steel prices boost. Third, gold, nine silver and ten positive expectations, is expected to begin in late August will advance intermediate traders replenishment operation will also promote steel. Finally is the futures market, the futures trend, continue to pull up the possibility of late remains high, support the spot market. On the whole, the late positive factors remain strong side, steel prices have upside.

Taken together, the factors that pull up Xuanrao August steel market is not good drop, short-term market within a narrow range, with firmer and long-term oriented, we recommend a good grasp of the business market, pay close attention to the trend of futures and raw materials. (China’s steel prices)

2015 steel prices continued downward, steel enterprises large losses. Forced some steel mills have chosen to stop losses, the industry stuck in a quagmire. Steel market enters 2016 after multiple positive factors and national macroeconomic policies to stimulate short-term demand and supply mismatch, etc., driven by a strong rebound in steel prices, profit per tonne up to thousand. The rapid improvement in profitability, bringing a large area to improve steel production complex and the overall level of profitability of steel prices, steel prices collective profitability. Market earnings stimulate production release in June, the national steel output broken million to capacity planning under pressure.

Recently announced some key enterprises. In severe overcapacity, loss of business continuity situation temporarily out of the mire, and achieve profitability.

Shagang Shagang Group’s shares, said the first half of 2016 profit 50 million yuan to 7500 yuan in the same period in 2015, had a loss of 62.9176 million yuan.

Angang Steel announcement is expected in the first half profit 300 million yuan, an increase of 93.5%, after the huge loss of 4.6 billion yuan in 2015. Wuhan Steel shares in 2015, “Wang losses” that “a quarter of the total profit of 130 million, net profit of 30 million, profit of 200 million in April, the first half of this year, a conservative estimate of 500 million yuan can be profitable.”

Maanshan Iron & Steel announcement the company expects first half attributable to shareholders of listed companies net profit of 450 million yuan, while the same period in 2015, a loss of 1.237 billion yuan.

Jiuquan Hongxing said the first half is expected to achieve net profit of 227 million yuan or so. A loss of 7.364 billion yuan last year,

Taigang Stainless Steel announcement is expected in the first half 2016 net profit attributable to shareholders of listed companies 2.86-3.17 yuan, a year earlier net profit of 63.9222 million yuan.

Including Shougang shares, three steel Min light Anyang Iron and Steel and other steel enterprises are to achieve profitability.

Tangshan billet down 90 yuan / ton, carbon billet of low alloy billet 2000 yuan 2120 yuan / ton ore imports steady at $ 54.8 / ton.

Steel benchmark:
Shagang July 1 of the High Line, plate, screw up 50 yuan / ton, steel rose 90 yuan / ton, prices HRB400Ф16-25mm thread 2280 yuan / ton.

This week: Europe fear the British off the US economy sound operation, as well as the weak May employment growth and sluggish business investment, the Fed kept interest rates unchanged. US June ADP employment increased by 172,000, an increase higher than expected 160,000. May trade deficit widened to $ 41.1 billion, higher than expected, due to rising crude oil prices, pushing up the amount of imports, while exports are still subject to the lingering impact of the strong dollar limit. July 2, when claims for unemployment benefits slightly higher than expected, the highest since mid-April, the lowest level. Eurozone June manufacturing PMI final value of 51.5 the previous month rose to 52.8; June services PMI final value fell to 52.8 from 53.3, the lowest since January 2015. Japan May core CPI fell 0.4 percent, the largest decline since April 2013 maximum. China: the new China Finance June services PMI rose to 52.7 percent, rebounded 1.5 percentage points higher than in May, the highest in nearly a year to a new high. China’s foreign exchange reserves in June $ 3,205,162,000,000, an increase $ 13.426 billion the previous month. The central bank this week in the open market to achieve a continuous net capital return. Thus, to July the central bank in the open market, the cumulative net return of funds of more than 700 billion yuan. Baosteel Zhanjiang steel project II ignition blast furnace will be July 15. 6, cold-rolled steel base in Rizhao project started. Sichuan Yajian 2017 crude steel production capacity of 4.2 million tons. Development and Reform Commission said that this year the railway construction investment holding more than 800 billion yuan.
This week long products index was 99.91 points, compared with the previous week rose 2.53%. This week, construction steel market prices continue to rise sharply, Shanghai, Hangzhou, Beijing, Tianjin, Chongqing and other 24 cities rose 20-180 yuan / ton; where Beijing and Tianjin, Shenyang, Chongqing, Xi’an and other market prices rose over hundred dollars.

According to the Shanghai Environmental Protection Bureau, on the eve of and during the G20 summit held in Hangzhou in September, requiring petrochemicals, steel and cement production enterprises 255 limited production, the purpose is to reduce pollutant emissions and protect air quality, the time for August 24 to September 6. Baosteel and Huaneng’s power plant equipment are required to stop, Shanghai Petrochemical strive to limit production to more than 50%.
Shanghai has completed the preparation “G20 summit in Shanghai ambient air quality protection plan” and reported to the municipal government approved the Ministry of Environmental Protection. Shanghai security programs around the pre-strengthening, will strictly control of the measures to strengthen the requirements for landing air quality protection measures, focus on key areas, key industries, key enterprises in Jinshan area as the key areas to focus on chemical and petrochemical industries, 255 will be scheduled stop of the need to take measures to limit production to strictly control emissions of enterprises, strengthen the implementation of various emission reduction and emergency safeguards.
Strive citywide utility coal-fired plants to limit production by 30%; the focus of the implementation of applied emission limit discontinued business measures; Jinshan District on the principle of the enterprise to suspend the chemical industry; Shanghai Petrochemical production safety in ensuring the implementation of the premise maximize limited production, and strive to limit production more than 50%; Shanghai Chemical Industry Park, Fengxian district scheduled a number of chemical companies to further cut-off, the list of enterprises to limit production and to implement measures to limit production stops.
The end of April, Shanghai Party Secretary Han Zheng went to the city specifically located in Jinshan District of G20 summit guarantee strict control of field research, Jinshan District requirements should be based on long-term, treating the symptoms, in close connection with the overall regional development and industrial transformation and upgrading, unswervingly continue to promote comprehensive environmental remediation Jinshan area, but also increase the firm’s efforts to adjust chemical companies, strengthen management according to law, strict law enforcement, effectively protect the G20 summit held smoothly.
Vice Mayor Jiang Zhuoqing also recently held a special meeting to deploy the implementation of the work of the G20 summit to protect air quality, the city departments at all levels in accordance with the CPC Central Committee and State Council decision to deploy, without conditions, not to reclaim, implement to the letter measures to ensure good air quality during the meeting. Next, to further clarify the respective responsibilities, strengthen coordination and supervision, strengthen fine management, pay close attention to the implementation of security programs. (Wall Street knowledge)

Today, china steel prices continue to adjust downward. Tangshan billet prices firm after several days of maintenance of stability, loose over the weekend, the current Xinda carbon billet price dropped close to 1,800 yuan, the price of other finished steel rebar, high wire, hot-rolled and cold-rolled and in the thick plate prices continue to move closer to the low, but the momentum of the market and from the adjustment period the node is running, the late worrying performance, the overall decline will continue to expand. Today, the central bank one-day operation amount of funds hit a new high of nearly two months of 170 billion, showing the central bank to stabilize the financial strain of intent. Shrinkage of the capital market was up operations also showed a weak and vulnerable markets of the disc will continue to adjust downward before the end of funds. The defensive operation at the beginning of this month, the spot steel market presentation, the main factor is the support from limited production of Tangshan positive expectations and the hype of the relatively weak amount of resources, limited production during the Tangshan market was relatively deserted, and as Tangshan limited production favorable faded spot steel market supply and demand will be weak as a glance further down the spot market. At present, both for domestic economic growth remains weak steel prices repression or international market turmoil brought about for commodities medium-term systematic repression, the steel city will have a challenge. While taking into account the financial side will become the current main sticking point, both the capital market also boosted or appearance of liquidity, the market holds many lessons have become more and more tense, which will also become the spot pressed steel city The main node, do not rule out steel prices may decline.

Bloomberg said, citing people familiar with the news of the world’s largest iron ore producer, vale is consultations with a number of Asian mining company, may sell the Brazilian iron ore assets, trading up to $7 billion. , according to people familiar with the deal has not yet reached, eventually could not reach any deal.
Vale in February, according to results released its fourth quarterly net loss of $8.6 billion last year, is the first loss since 1997. Vale said hope to raise about $10 billion before the next year, to pay our debts.
Some foreign media reported last month said, vale to sell some assets with the Banks of the preliminary negotiations, including all or part of its stakes in fertilizer business as well as the copper business in Brazil. There are reports that the world’s largest concentrated phosphate fertilizer producers Mosaic (Mosaic) is to buy vale fertilizer business negotiations, is expected to price or $3 billion.
At present, the other major global mining giant freeport – mike moran copper gold companies, glencore, such as Anglo American are trying to sell assets to reduce debt. This is mainly because commodity prices downturn caused mining giant performance, increase the cost of credit.

Wuhan Steel shares since last year decimated, to become the domestic steel industry production capacity, improve efficiency in microcosm. June 16 afternoon, the Wuhan Steel shares held annual shareholders’ meeting, in answer to a question raised by investors, the company chairman Ma Guoqiang said that the steel industry since last year have shown a bottoming trend, mainly iron and steel enterprises will gradually achieve breakeven or profit.
By downward economic pressure and excess industry capacity severely affected, in recent years, most domestic steel companies have suffered different degrees of loss, Wuhan Steel shares in 2015 amounted to a loss of 7.5 billion yuan. In response, Ma Guoqiang believes that this is largely due to a substantial decline in steel prices last year. According to reports, the end of 2015 compared to the beginning of the hot-rolled steel, cold rolled steel, galvanized unit price per tonne decreased by about 1,100 yuan, 1300 yuan and 1400 yuan, which led directly to Wuhan Steel shares reduced profit nearly billion. However, the price of iron ore and other upstream materials is correspondingly reduced, making the company’s raw material costs, offset some of the losses.
So, when the steel industry to pick up, the recovery? In fact, in the first quarter of this year, steel prices, a direct impact on some of the steel companies in the first quarter profit; since May, steel prices and the emergence of a sharp rise, the industry seems to be showing signs of improvement. Wuhan Steel shares Directors, following the new general manager of Zou believes that this year short-term rebound in the steel market, does not mean that the industry has fully recovered.
“The current industry-wide capacity utilization rate of less than 70%, it is still a serious excess capacity in the industry.” Following the new Zou said the sound development of the industry also needs to continue to promote the production, mergers and acquisitions, this process is still a long time, “from 6 start month, steel prices have declined, the formation of the third quarter of this year to support price stability more difficult. ”
Ma Guoqiang the development trend of the industry is relatively optimistic that the steel industry when the worst is past. “This year rehabilitation rise in steel prices is an objective, but because of excessive repair, now have the callback.” Ma Guoqiang believes that steel prices will gradually return to normal and stabilized, the main iron and steel enterprises will gradually achieve profit or losses, “National moving from multiple angles safety supervision, environmental protection, quality supervision to purify the steel industry, the previous state of disorderly competition will be improved, which is large, compliance steel companies is good. ”
Shareholders’ Meeting on the same day, investors asked WISCO future development plans. Ma Guoqiang responded that Wuhan Steel shares no planned sideline, the current will continue to iron and steel industry, seize the Yangtze River economic belt construction opportunities policy, the use of Language Wuhan geographical advantages, radiation throughout the central market area.
“The company currently no plans of mergers and acquisitions, mergers peers nor better chance.” Ma Guoqiang said skills, reduce costs, improve efficiency will be the Wuhan Steel shares management’s focus, “benchmarking world-class enterprises, Wuhan Iron and Steel production equipment is not bad, adequate technical reserves, but the biggest short board is the product quality is not stable enough, this is the Wuhan Iron and Steel in the future will focus on breakthroughs in place. ”
In addition, Wuhan Steel shares will continue to manage systems and human resources optimization, the company will reduce layers of management, and ultimately the three-level management model. 2015, Wuhan Steel shares attrition more than 6,000 the total number of companies are also serving nearly 30,000 from the previous to the current 2.3 million people. According to Ma Guoqiang introduced, if Wuhan Steel shares to maintain the current production, according to the standard per capita steel production 1,000 tons / year, the company also is expected to more than 6,000 people downsizing.

Billet

Partially finished steel prices yesterday, with varying degrees of pull up futures performance is more popular, and today the overall turnover of the steel market is not satisfactory, product shipments light, due to the transport turnover hardly optimistic restricted stock, and futures plunge on steel City is even worse. Steel City again face, short-term Have billet turning machine?

From the current status of the Steel City, the first time the director discontinued tune rolled billet, billet demand is not optimistic at this stage to take the goods, mostly downstream slab transfer rolled billet plant and traders short replenishment, and then because the road is restricted billet transportation affected a large extent, so the market can circulate relatively limited resources, some manufacturers backlog of inventory stock, the latter part of the market there is a certain negative impact. Secondly, the intensity of blast furnace stew expected to shrink from the previous month. Originally I thought that after all the stew blast furnace, the market will be a “crazy” speculation, but by today I Tangshan steel nets actual situation simmered stove understand, discover stew blast furnace and the intensity is not expected, according to statistics now Tangshan steel prices blast maintenance seat number (including discontinued) 69 maintenance volume 50280m3, the operating rate of 66.27% compared with 23.43% drop on the 12th. Speculative factors in the market can be greatly reduced, coupled with lower futures has fallen sharply, the business mentality to reproduce downturn.